| INVESTMENT SECURITIES |
NOTE D: INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities as of September 30, 2021 and December 31, 2020 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | | | | | Gross | | Gross | | | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | Fair | | Amortized | | Unrealized | | Unrealized | | Fair | (000’s omitted) | | Cost | | Gains | | Losses | | Value | | Cost | | Gains | | Losses | | Value | Available-for-Sale Portfolio: | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Treasury and agency securities | | $ | 3,467,053 | | $ | 44,279 | | $ | 118,072 | | $ | 3,393,260 | | $ | 2,423,236 | | $ | 94,741 | | $ | 16,595 | | $ | 2,501,382 | Obligations of state and political subdivisions | | | 404,531 | | | 17,654 | | | 220 | | | 421,965 | | | 451,028 | | | 24,632 | | | 0 | | | 475,660 | Government agency mortgage-backed securities | | | 503,548 | | | 11,232 | | | 4,104 | | | 510,676 | | | 506,540 | | | 16,280 | | | 182 | | | 522,638 | Corporate debt securities | | | 8,000 | | | 84 | | | 6 | | | 8,078 | | | 4,499 | | | 137 | | | 1 | | | 4,635 | Government agency collateralized mortgage obligations | | | 23,746 | | | 647 | | | 1 | | | 24,392 | | | 42,476 | | | 1,111 | | | 10 | | | 43,577 | Total available-for-sale portfolio | | $ | 4,406,878 | | $ | 73,896 | | $ | 122,403 | | $ | 4,358,371 | | $ | 3,427,779 | | $ | 136,901 | | $ | 16,788 | | $ | 3,547,892 | | | | | | | | | | | | | | | | | | | | | | | | | | Equity and other Securities: | | | | | | | | | | | | | | | | | | | | | | | | | Equity securities, at fair value | | $ | 251 | | $ | 208 | | $ | 0 | | $ | 459 | | $ | 251 | | $ | 194 | | $ | 0 | | $ | 445 | Federal Home Loan Bank common stock | | | 7,251 | | | 0 | | | 0 | | | 7,251 | | | 7,468 | | | 0 | | | 0 | | | 7,468 | Federal Reserve Bank common stock | | | 33,916 | | | 0 | | | 0 | | | 33,916 | | | 33,916 | | | 0 | | | 0 | | | 33,916 | Other equity securities, at adjusted cost | | | 2,651 | | | 750 | | | 0 | | | 3,401 | | | 4,876 | | | 750 | | | 0 | | | 5,626 | Total equity and other securities | | $ | 44,069 | | $ | 958 | | $ | 0 | | $ | 45,027 | | $ | 46,511 | | $ | 944 | | $ | 0 | | $ | 47,455 |
A summary of investment securities that have been in a continuous unrealized loss position is as follows: As of September 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or Longer | | Total | | | | | | | | Gross | | | | | | | Gross | | | | | | | Gross | | | | | Fair | | Unrealized | | | | Fair | | Unrealized | | | | Fair | | Unrealized | (000’s omitted) | | # | | Value | | Losses | | # | | Value | | Losses | | # | | Value | | Losses | | | | | | | | | | | | | | | | | | | | | | | | | | Available-for-Sale Portfolio: | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Treasury and agency securities | | 38 | | $ | 1,223,230 | | $ | 41,243 | | 8 | | $ | 579,793 | | $ | 76,829 | | 46 | | $ | 1,803,023 | | $ | 118,072 | Obligations of state and political subdivisions | | 21 | | | 16,608 | | | 220 | | 0 | | | 0 | | | 0 | | 21 | | | 16,608 | | | 220 | Government agency mortgage-backed securities | | 117 | | | 169,915 | | | 3,528 | | 20 | | | 18,069 | | | 576 | | 137 | | | 187,984 | | | 4,104 | Corporate debt securities | | 1 | | | 4,994 | | | 6 | | 0 | | | 0 | | | 0 | | 1 | | | 4,994 | | | 6 | Government agency collateralized mortgage obligations | | 5 | | | 1,088 | | | 1 | | 1 | | | 73 | | | 0 | | 6 | | | 1,161 | | | 1 | Total available-for-sale investment portfolio | | 182 | | $ | 1,415,835 | | $ | 44,998 | | 29 | | $ | 597,935 | | $ | 77,405 | | 211 | | $ | 2,013,770 | | $ | 122,403 |
As of December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or Longer | | Total | | | | | | | | Gross | | | | | | | Gross | | | | | | | Gross | | | | | Fair | | Unrealized | | | | Fair | | Unrealized | | | | Fair | | Unrealized | (000’s omitted) | | # | | Value | | Losses | | # | | Value | | Losses | | # | | Value | | Losses | | | | | | | | | | | | | | | | | | | | | | | | | | Available-for-Sale Portfolio: | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Treasury and agency securities | | 13 | | $ | 831,015 | | $ | 16,595 | | 0 | | $ | 0 | | $ | 0 | | 13 | | $ | 831,015 | | $ | 16,595 | Obligations of state and political subdivisions | | 1 | | | 358 | | | 0 | | 0 | | | 0 | | | 0 | | 1 | | | 358 | | | 0 | Government agency mortgage-backed securities | | 89 | | | 75,992 | | | 182 | | 2 | | | 14 | | | 0 | | 91 | | | 76,006 | | | 182 | Corporate debt securities | | 1 | | | 1,001 | | | 1 | | 0 | | | 0 | | | 0 | | 1 | | | 1,001 | | | 1 | Government agency collateralized mortgage obligations | | 13 | | | 5,246 | | | 10 | | 1 | | | 0 | | | 0 | | 14 | | | 5,246 | | | 10 | Total available-for-sale investment portfolio | | 117 | | $ | 913,612 | | $ | 16,788 | | 3 | | $ | 14 | | $ | 0 | | 120 | | $ | 913,626 | | $ | 16,788 |
The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities include treasuries, agencies, and mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, which are currently rated AAA by Moody’s Investor Services, AA+ by Standard & Poor’s and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions and corporations carry a credit rating of A or better. Additionally, a portion of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. Timely principal and interest payments continue to be made on the securities. The unrealized losses in the portfolios are primarily attributable to changes in interest rates. As such, management does not believe any individual unrealized loss as of September 30, 2021 represents credit losses and no unrealized losses have been recognized into credit loss expense. Accordingly, there is no allowance for credit losses on the Company’s available-for-sale portfolio as of September 30, 2021. Accrued interest receivable on available-for-sale debt securities, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $12.5 million at September 30, 2021 and is excluded from the estimate of credit losses. The amortized cost and estimated fair value of debt securities at September 30, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. | | | | | | | | | Available-for-Sale | | | Amortized | | Fair | (000’s omitted) | | Cost | | Value | Due in one year or less | | $ | 187,457 | | $ | 189,642 | Due after one through five years | | | 693,642 | | | 715,779 | Due after five years through ten years | | | 1,506,410 | | | 1,515,582 | Due after ten years | | | 1,492,075 | | | 1,402,300 | Subtotal | | | 3,879,584 | | | 3,823,303 | Government agency mortgage-backed securities | | | 503,548 | | | 510,676 | Government agency collateralized mortgage obligations | | | 23,746 | | | 24,392 | Total | | $ | 4,406,878 | | $ | 4,358,371 |
Investment securities with a carrying value of $2.48 billion and $2.03 billion at September 30, 2021 and December 31, 2020, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included $475.0 million and $473.4 million of U.S. Treasury securities that were pledged as collateral for securities sold under agreement to repurchase at September 30, 2021 and December 31, 2020, respectively. All securities sold under agreement to repurchase as of September 30, 2021 and December 31, 2020 have an overnight and continuous maturity.
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